Mountain View Whisman trustees approve option to buy staff-housing land and sign ground lease to occupy building

Mountain View Whisman School District trustees voted unanimously on Jan. 23 to approve an option-to-purchase agreement with the property owner and to sign a ground lease that will allow the district to occupy a recently completed staff-housing building.

The measures give the district the right to pursue purchase of the land under the building and permission to move staff into units while the two parties complete appraisal and financing work. Trustee Bill Lambert moved both approvals; the record shows all five trustees voted in favor.

The board heard a staff presentation that described the option agreement as a nonbinding right to negotiate a final purchase price and terms within the months ahead. Attorney Phil Henderson told trustees the district—s payment under the option process would include an initial fee discussed in the presentation and that independent appraisals by each party could be swapped and negotiated; if the parties could not agree, a third appraiser would be used. Henderson said the district would not be obligated to buy the land if the resulting price or financing plan proved unacceptable.

Public commenters largely opposed the approvals. Resident Hendra urged trustees "to not sign the 100,000 agreement for option to purchase," calling the staff-housing project "a disaster" and urging an exit strategy. Corinne Dylan, who said she has experience in commercial real estate, called the $50,000 appraisal/option fee quoted by staff "an arbitrary number" and criticized earlier contract terms the district made with the developer. Several other residents, including Miss Cielick and remote speaker Gurnathan, urged the board to slow down, send the district back to explore land swaps, grants or other alternatives and to provide clearer numbers about how many district staff are interested in living in the complex.

District staff said there are already tenants and applicants interested in units. Assistant (presenter) Anderson said the ground lease "gives us the opportunity to actually occupy the building" and that without a signed ground lease the district could not guarantee entry to the building even if staff wished to move in. Anderson said the district has a deferred-rent structure in the ground-lease documents; when asked for specifics, staff explained that some rent and construction-period payments have been deferred under the current agreements and that the timing of any required payments depends on whether and when the option to buy is exercised.

Trustees debated risks and benefits. Trustee Lambert and other trustees said owning the land could give the district more flexibility for refinancing the overall project, protect the general fund in the long run and reduce the risk that lease payments would fall entirely on district operating funds. Other trustees and many public speakers stressed the project—s cost overruns and asked for more transparency about who would occupy units and how Measure T bond dollars or other funds might be used.

On motions recorded at the meeting, the board: - Approved an option agreement; the motion was moved by Trustee Bill Lambert and seconded by Trustee Anna Reed (recorded as "Reid" in the transcript). The vote was 5-0 in favor (Trustees Bill Lambert, Anna Reed, Lisa Henry, Devin Conley and Charles DeFazio voting yes). - Approved the ground lease to allow the district to occupy the building; the motion was moved by Trustee Bill Lambert and seconded by Trustee Anna Reed. The vote was 5-0 in favor.

The decisions do not obligate the district to buy the land. Staff emphasized the board would only exercise the option to purchase if trustees determine a final price and a financing plan are acceptable. Henderson told trustees that if the option is exercised the closing period in the agreement is short (he cited a 20-day closing window in the presentation) and that a typical down payment under the option could be substantial (Henderson cited a $250,000 down-payment figure during explanation).

Board members and staff said next steps include: exchanging appraisals with the property owner, continuing negotiations on price, and working on financing options that could include one-time payoff or longer-term arrangements. Staff also said they would continue outreach to potential tenants and the city and would return to the board with updates as the appraisal-and-negotiation work advances.

Votes at a glance

Option-to-purchase agreement (PSA form dated Jan. 23, 2025): Motion moved by Trustee Bill Lambert; seconded by Trustee Anna Reed. Vote: 5-0 (Lambert, Reed, Henry, Conley, DeFazio). Outcome: approved.

Ground lease (dated Jan. 23, 2025): Motion moved by Trustee Bill Lambert; seconded by Trustee Anna Reed. Vote: 5-0 (Lambert, Reed, Henry, Conley, DeFazio). Outcome: approved.

Ending

Trustees said they expect several months of appraisal and funding work before they would decide whether to exercise the option to buy. If the board exercises that option, staff warned the board the contractual closing timetable will be tight and the district should be prepared to place funds or arrange financing quickly. The board scheduled close follow-up work and continued public updates as negotiations and tenant move-ins proceed.